Texas Municipal League Intergovernmental Risk Pool (TMLIRP) Company Profile

Background

The Texas Municipal League Intergovernmental Risk Pool (TMLIRP) is a nonprofit organization established in 1974 to provide risk financing and loss prevention services to Texas municipalities and other local governments. Created by local governments for local governments, TMLIRP offers a stable and economical source of coverage, including workers' compensation, liability, property, and cyber insurance. As the first municipal risk pool in the United States, TMLIRP has grown to serve over 2,400 local governments, protecting nearly $50 billion in municipal property.

Key Strategic Focus

TMLIRP's strategic focus includes:

Core Objectives: Providing comprehensive risk management solutions tailored to the unique needs of local governments, ensuring financial stability and operational excellence.

Areas of Specialization: Specializing in workers' compensation, liability, property, and cyber coverage, TMLIRP addresses a wide range of risks faced by municipalities.

Key Technologies Utilized: Implementing advanced claims management systems, such as Guidewire ClaimCenter, to enhance operational efficiency and service delivery.

Primary Markets Targeted: Serving over 2,400 local governments, including cities, housing authorities, municipal utility districts, and various other political subdivisions across Texas.

Financials and Funding

TMLIRP operates as a nonprofit entity, focusing on providing cost-effective coverage to its members. In the fiscal year 2023–2024, the Pool generated approximately $221 million in contributions and investment income, with losses and expenses totaling around $209 million, resulting in a revenue over expenses of approximately $12 million. This surplus is reinvested to maintain rate stability and ensure financial resilience.

Pipeline Development

As a risk pool, TMLIRP does not engage in traditional product development or clinical trials. Instead, it continually assesses and adapts its coverage offerings to meet the evolving needs of its members, including the introduction of specialized coverages such as cyber insurance to address emerging risks.

Technological Platform and Innovation

Proprietary Technologies: Utilizing Guidewire ClaimCenter for claims management, TMLIRP enhances operational efficiency and service delivery.

Significant Scientific Methods: Employing data analytics and loss prevention training programs to proactively identify and mitigate risks, thereby reducing claims and associated costs.

Leadership Team

TMLIRP is governed by an 18-member Board of Trustees, primarily composed of city officials, who oversee the organization's strategic direction and operations. The executive team includes:

Bert Lumbreras: Chair of the Board of Trustees, leading initiatives to enhance member services and operational effectiveness.

Scott Houston: Intergovernmental Relations Manager, responsible for maintaining strong relationships with member entities and ensuring alignment with their needs.

Market Insights and Dynamics

The public entity risk pool market is characterized by a growing emphasis on cost-effective risk management solutions for local governments. TMLIRP, as the largest public entity risk pool in the United States, plays a pivotal role in this sector.

Competitor Analysis

Key competitors include:

Texas Association of School Boards Risk Management Fund: Provides risk management services to Texas school districts.

Texas Association of Counties Health & Employee Benefits Pool: Offers health and employee benefits coverage to Texas counties.

California State Association of Counties Excess Insurance Authority: Provides excess insurance coverage to California counties.

These organizations offer similar services but operate in different regions or focus on specific types of local government entities.

Strategic Collaborations and Partnerships

TMLIRP collaborates with various entities to enhance its service offerings, including:

Political Subdivision Workers’ Compensation Alliance (PSWCA): A network of public entity pools that provides quality treatment for injured employees.

Texas Police Chiefs Association: Partnerships for law enforcement resources and best practices recognition programs.

Operational Insights

TMLIRP's operational strategy focuses on:

Member-Centric Services: Tailoring coverage and loss prevention programs to meet the specific needs of local governments.

Financial Stability: Maintaining strong capitalization and prudent financial management to ensure rate stability and resilience against catastrophic losses.

Technological Advancements: Investing in modern claims management systems and data analytics to improve operational efficiency and service quality.